Stocks mixed ahead of key economic data

Stocks were mixed while the dollar rebounded from its weakest level in almost three months as traders awaited a slew of US economic data before markets pause for holidays in America and Japan.

Futures on the S&P 500 and Nasdaq 100 were flat after Wall Street’s rally stalled on Tuesday. Nvidia Corp. declined in pre-market trading after reporting results on Tuesday that didn’t satisfy investors’ lofty expectations. General Motors Co. gained after the CEO if its troubled self-driving car unit resigned.

News of a temporary halt in fighting between Israel and Hamas failed to ignite risk-on sentiment, with investors looking to data on US jobless claims, durable- and capital-goods orders and consumer sentiment later Wednesday for clues on the direction of monetary policy. Treasury yields were steady.

Minutes of the Federal Reserve’s last rates meeting showed policymakers united around a strategy to “proceed carefully” on future interest-rate moves and base any further tightening on progress toward their inflation goal. Swap contracts linked to Fed meetings currently price in around a 25% probability of a first rate cut in March, slightly lower than before publication of the FOMC minutes.

“The fact that markets are considering the potential for rates to be lowered in the first quarter at all does indicate that it’s going to be pretty hard slating for the US dollar at this stage,” Sean Callow, senior currency strategist at Westpac Banking Corp, said on Bloomberg Television. As the Fed’s December meeting approaches, “markets would be looking for a change of language that really dials down the threat of further hikes,” he said.

Microsoft Corp. climbed about 0.4% in premarket trading after Sam Altman’s return to OpenAI after days of drama. The decision to restore him to the world’s best-known artificial intelligence startup marks a victory for biggest backer Microsoft, which worked with fellow investors to reverse Altman’s firing. 

The Stoxx Europe 600 index edged higher. Among individual movers, accounting-software maker Sage Group Plc gained after an earnings beat. Steelmaker Thyssenkrupp AG climbed after reporting fourth-quarter results. Kingfisher Plc dropped after the home-improvement retailer lowered profit guidance.

A gauge of Asian equities fell as artificial intelligence stocks slid. Mainland Chinese shares were on the back foot, with tech and industrial companies among the laggards.

Cryptocurrencies declined after Binance Holdings Ltd. and its Chief Executive Officer Changpeng Zhao pleaded guilty to money laundering and sanctions violations under a sweeping settlement with the US that allows the cryptocurrency exchange to continue operating.  Bitcoin and BNB — the token linked to Changpeng Zhao’s Binance ecosystem — slipped.

Oil steadied, with signs of another stockpile build in the US coming ahead of an OPEC+ meeting on supply over the weekend.

 Key events this week:

• Eurozone consumer confidence, Wednesday
• US initial jobless claims, University of Michigan consumer sentiment, durable goods, Wednesday
• Bank of Canada Governor Tiff Macklem speaks, Wednesday
• Eurozone S&P Global Manufacturing & Services PMI, Thursday
• US markets closed for Thanksgiving holiday while Japan is off for Labor Thanksgiving — Thursday
• ECB publishes account of October policy meeting, Thursday
• Black Friday, traditional kickoff for the US holiday shopping season
• ECB’s Christine Lagarde speaks, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.3% as of 10:05 a.m. London time
• S&P 500 futures were little changed
• Nasdaq 100 futures were little changed
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index fell 0.4%
• The MSCI Emerging Markets Index fell 0.5%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%
• The euro was little changed at $1.0902
• The Japanese yen fell 0.5% to 149.06 per dollar
• The offshore yuan fell 0.3% to 7.1614 per dollar
• The British pound was little changed at $1.2529

Cryptocurrencies

• Bitcoin fell 0.2% to $36,753.18
• Ether rose 1.3% to $2,011.73

Bonds

• The yield on 10-year Treasuries was little changed at 4.39%
• Germany’s 10-year yield was little changed at 2.57%
• Britain’s 10-year yield advanced two basis points to 4.12%

Commodities

• Brent crude fell 0.7% to $81.88 a barrel
• Spot gold rose 0.2% to $2,002.57 an ounce

This story was produced with the assistance of Bloomberg Automation.